1509 ET – Oil futures recover some ground amid short-covering after three days of declines, supported by lingering Middle East risk perception and bullish inventory data in the U.S. With conflicting reports about the extent to which Iran’s potential nuclear capabilities have been set back, the market is waiting for clarification, says BOK Financial’s Dennis Kissler. The EIA reported crude oil inventories 11% below the five-year average, with gasoline stocks 3% below and distillate fuels 20% below. Tightening supply comes just as consumers are clamoring for more energy, with jet fuel demand near record levels and the travel season just starting, Kissler says. “I think the market’s starting to realize that the selloff’s probably too much.” WTI settles up 0.9% at $64.92 a barrel, and Brent rises 0.8% to $67.68 a barrel. (anthony.harrup@wsj.com)

Oil Rises After Sharp Selloff, With U.S.-Iran Talks in Focus

1530 GMT – Oil prices rise more than 1% following a sharp selloff earlier this week, with traders focusing on talks between the U.S. and Iran. Brent crude rises 1.4% to $67.13 a barrel, while WTI gains 1.7% to $65.43 a barrel. Futures sold off rapidly following a cease-fire deal between Israel and Iran, and are now down more than 10% on the week. President Trump said he doesn’t think a nuclear deal with Iran is necessary after U.S. strikes on Tehran’s nuclear sites, but that there would be talks next week. He also signaled he wouldn’t stop China from buying Iranian oil. Meanwhile, the latest EIA data showed U.S. crude inventories fell by 5.8 million barrels last week—much more than the 1.3 million barrels estimated by analysts—marking a fifth straight weekly decline. Gasoline and distillate fuel inventories also fell, pointing to a healthy demand picture in the world’s largest oil consumer. (giulia.petroni@wsj.com)